Financial Performance - The total revenue for the year ended December 31, 2024, was approximately HKD 1,133.1 million, a decrease of about HKD 110.6 million compared to HKD 1,243.7 million for the year ended December 31, 2023[7]. - The net loss attributable to the owners of the company for the year ended December 31, 2024, was approximately HKD 605.0 million, compared to a net loss of approximately HKD 294.6 million for the year ended December 31, 2023, representing an increase in loss of about HKD 310.4 million[10]. - The basic loss per share for the year was approximately HKD 0.9432, compared to approximately HKD 0.4592 for the same period last year[14]. - The property development segment reported revenue of approximately HKD 1,053.8 million for the year ended December 31, 2024, down from HKD 1,158.0 million for the year ended December 31, 2023[16]. - The total loss from property unit sales increased from approximately HKD 39.6 million to approximately HKD 155.7 million for the respective periods[13]. - The impairment of properties held for sale increased from approximately HKD 23.6 million to approximately HKD 185.7 million for the respective periods[13]. - Financing costs (excluding capitalized amounts) rose from approximately HKD 94.0 million to approximately HKD 143.4 million for the respective periods[13]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[11]. Debt and Equity - The total debt was successfully reduced from HKD 2 billion to HKD 1.2 billion, reflecting the company's commitment to maintaining a solid financial foundation[7]. - As of December 31, 2024, the total equity of the group was approximately HKD 801.5 million, a decrease from HKD 1,414.3 million as of December 31, 2023[27]. - The group's current assets as of December 31, 2024, were approximately HKD 1,619.0 million, down from HKD 3,157.1 million as of December 31, 2023, primarily due to the sale of property units[27]. - The group's current liabilities decreased to approximately HKD 1,523.2 million as of December 31, 2024, from HKD 2,426.4 million as of December 31, 2023, due to repayments from property sales[27]. - The capital debt ratio increased from approximately 146.3% as of December 31, 2023, to about 154.6% as of December 31, 2024, mainly due to significant losses incurred during the year[28]. - The net debt-to-equity ratio rose from approximately 143.0% as of December 31, 2023, to about 151.0% as of December 31, 2024, reflecting a decrease in total equity[28]. - The debt-to-asset ratio decreased from approximately 50.3% as of December 31, 2023, to about 48.8% as of December 31, 2024, due to sales and loan repayments[29]. Property and Investment Segments - The revenue from the "Rain After" project, a luxury shared apartment complex, was approximately HKD 1,024.5 million for the year ending December 31, 2024, with 168 residential and parking units completed and delivered, compared to HKD 996.3 million for the same period in 2023[18]. - The property investment segment generated revenue of approximately HKD 43.1 million for the year ending December 31, 2024, a decrease of about HKD 2.5 million from HKD 45.6 million in the previous year[19]. - The total carrying value of the company's investment properties was approximately HKD 738.4 million as of December 31, 2024, down from HKD 776.6 million a year earlier[20]. - The company confirmed revenue of approximately HKD 13.9 million from property management services for the year ending December 31, 2024, an increase from HKD 12.9 million in the previous year[22]. - The financing segment generated revenue of approximately HKD 2.8 million for the year ending December 31, 2024, a decrease of about HKD 1.2 million from HKD 4.0 million in the previous year due to a reduction in average outstanding loan balances[23]. - The construction and renovation segment reported revenue of approximately HKD 6.0 million for the year ending December 31, 2024, compared to HKD 5.7 million in the previous year[24]. - The wine business segment reported revenue of approximately HKD 13.4 million for the year ending December 31, 2024, a decrease of about HKD 3.6 million from HKD 17.0 million in the previous year, primarily due to a decline in wine sales[25]. Risk Management and Governance - The company acknowledges various risks, including market risk, business risk, and regulatory risk, which could significantly impact its financial condition and operations[40]. - The board has established a risk control committee to manage potential risks and uncertainties affecting the business[41]. - The company is committed to monitoring and reviewing its risk management and internal control systems regularly[41]. - The company emphasizes the importance of good governance for long-term success and sustainable development[63]. - The company has maintained compliance with the corporate governance code throughout the reporting period, except for the separation of the roles of chairman and CEO[61]. - The company has established a shareholder communication policy to enhance transparency and facilitate information sharing with shareholders[101]. - The company has adopted a whistleblowing policy to ensure the highest levels of openness, integrity, and accountability, with no significant fraud reported during the reporting period[103]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development as a long-term goal, integrating environmental, social, and governance (ESG) factors into its business strategy[111]. - The ESG report is prepared according to the guidelines set out in the Stock Exchange's listing rules, detailing the group's management methods and performance[112]. - Stakeholder engagement is considered vital for improving ESG performance, with regular communication channels established[116]. - The company has implemented a green office program to encourage energy-saving practices, including the use of energy-efficient equipment and promoting a paperless environment[122]. - The company has not reported any significant non-compliance issues regarding emissions and waste management regulations during the review year[121]. - The company has adopted measures to minimize carbon emissions from its construction projects by outsourcing to independent contractors[118]. - The company has implemented measures to promote environmental sustainability in the workplace, including a paper recycling culture and water-saving initiatives[162]. Employee and Operational Insights - The group employed 116 staff as of December 31, 2024, down from 133 staff as of December 31, 2023, maintaining competitive salary levels[39]. - The overall employee turnover rate for the year ending December 31, 2024, is approximately 33%[134]. - 49.5% of employees received training during the year, with 56.0% of female employees and 44.0% of male employees participating[138]. - The group provides competitive compensation and performance-based bonuses to employees, ensuring compliance with labor laws and regulations[132]. - The group has a zero-tolerance policy towards forced labor and child labor, adhering to all related laws and regulations[139]. - The company ensures all building projects meet BEAM Plus certification, focusing on sustainable materials and waste management, air and noise pollution control, and energy efficiency[148]. Shareholder and Capital Structure - The total available reserves for distribution as of December 31, 2024, are approximately HKD 63.6 million, down from HKD 363.1 million in 2023[176]. - The company did not declare any final dividends for the reporting period, nor any interim dividends for the six months ending June 30, 2024[167]. - The total issued share capital of the company as of December 31, 2024, is HKD 6,414,980, divided into 641,498,000 shares, all fully paid[200]. - The company’s share option plan allows for a maximum of 22,400,000 shares to be granted, representing 10% of the total issued shares as of the listing date[199]. - The company has granted 10,000,000 share options to the controlling shareholder, increasing the plan's authorization limit to 64,149,800 shares, which is 10% of the total issued shares at the time of approval[199].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of approximately HKD 1,133.1 million, a decrease of 8.9% from HKD 1,243.7 million in the previous year[2]. - The company incurred a loss attributable to owners of approximately HKD 605.0 million, compared to a loss of HKD 294.6 million in the previous year, representing an increase in loss of 105.5%[3]. - Basic and diluted loss per share for the year was approximately HKD 0.9432, up from HKD 0.4592 in the previous year[4]. - The gross loss for the year was approximately HKD 276.9 million, compared to a gross loss of HKD 0.123 million in the previous year[3]. - The group reported a pre-tax loss of HKD 610,380,000 for 2024, compared to a loss of HKD 301,174,000 in 2023[14]. - The company reported a pre-tax loss of HKD 605,029,000 for the year ended December 31, 2024, compared to a loss of HKD 294,595,000 for the previous year, indicating a significant increase in losses[25]. - The group experienced a total loss from property unit sales of approximately HKD 155.7 million for the year ended December 31, 2024, up from approximately HKD 39.6 million for the year ended December 31, 2023[46]. - The impairment of properties held for sale increased to approximately HKD 185.7 million for the year ended December 31, 2024, from approximately HKD 23.6 million for the year ended December 31, 2023[46]. Assets and Liabilities - Total assets decreased to approximately HKD 2,476.7 million from HKD 3,022.2 million, reflecting a decline of 18.1%[5]. - Current liabilities decreased to approximately HKD 1,523.2 million from HKD 2,426.4 million, a reduction of 37.2%[5]. - The company's net asset value decreased to approximately HKD 801.5 million from HKD 1,414.3 million, a decline of 43.3%[6]. - The total assets of the group decreased to HKD 2,476,716,000 in 2024 from HKD 4,022,204,000 in 2023[15]. - Total liabilities decreased to HKD 1,675,247,000 in 2024 from HKD 2,607,928,000 in 2023[15]. - The group's current assets were approximately HKD 1,619.0 million, down from HKD 3,157.1 million, a decrease of about 48.7% primarily due to the sale of property units[58]. - The total equity of the group was approximately HKD 801.5 million as of December 31, 2024, a significant decrease from HKD 1,414.3 million the previous year, reflecting a decline of about 43.3%[58]. Revenue Breakdown - Revenue from property development decreased to HKD 1,053,803,000 in 2024, down 8.9% from HKD 1,157,984,000 in 2023[14]. - Property investment revenue was HKD 43,069,000 in 2024, down from HKD 45,609,000 in 2023[14]. - The wine business generated revenue of HKD 13,396,000 in 2024, down from HKD 16,960,000 in 2023[14]. - Revenue from serviced apartments under the "Metropolitan" brand increased to approximately HKD 3.5 million, up from HKD 3.4 million, reflecting a growth of about 2.9% year-on-year[50]. - The city storage and workspace segment generated revenue of approximately HKD 38.1 million, down from HKD 38.6 million, representing a decline of about 1.3% year-on-year[51]. - The property management services segment reported revenue of approximately HKD 13.9 million, an increase from HKD 12.9 million, reflecting a growth of about 7.8% year-on-year[53]. - Revenue from financing activities decreased to approximately HKD 2.8 million from HKD 4.0 million, a decline of about 30% year-on-year due to a reduction in average outstanding loan balances[54]. - The construction and renovation services segment generated revenue of approximately HKD 6.0 million, up from HKD 5.7 million, indicating a growth of about 5.3% year-on-year[55]. - The wine business segment reported revenue of approximately HKD 13.4 million, down from HKD 17.0 million, a decrease of about 21.2% year-on-year primarily due to a downturn in the overall wine market in Hong Kong[56]. Financing and Costs - The company’s financing costs increased to approximately HKD 143.4 million from HKD 94.0 million, an increase of 52.5%[3]. - The financing costs (excluding capitalized amounts) rose to approximately HKD 143.4 million for the year ended December 31, 2024, from approximately HKD 94.0 million for the year ended December 31, 2023[46]. - The total employee costs decreased to HKD 32,573,000 in 2024 from HKD 39,218,000 in 2023, representing a reduction of about 17%[23]. - The company recognized a fair value gain of HKD 2,064,000 on profit participation bonds in 2024, with no such gain reported in 2023[33]. - The balance of other receivables as of December 31, 2024, was HKD 3,880,000, up from HKD 3,395,000 in 2023, reflecting a year-on-year increase of 14.3%[30]. Strategic Focus and Future Outlook - The company plans to continue focusing on property development and management services, as well as exploring new investment opportunities in the market[7]. - The property market is expected to perform better in 2025 due to easing interest rates and government investment immigration plans[73]. - The company plans to enhance customer experience and operational efficiency through technology in 2025[73]. - The company is committed to strategic investments and sustainable growth to create long-term value[74]. Governance and Compliance - The Audit Committee has reviewed the audited consolidated financial statements for the year ended December 31, 2024[82]. - The company has complied with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[80]. - No significant events requiring disclosure have occurred since December 31, 2024[75]. - The annual general meeting will be held on May 28, 2025, with a suspension of share transfer registration from May 23 to May 28, 2025[76][77]. - The board of directors includes two executive directors, Mr. Chen Wenhui (Chairman and CEO) and Ms. Zhang Huixuan, along with two non-executive directors, Mr. Xu Yingde and Mr. Yan Guowen, and three independent non-executive directors, Dr. Huang Weikang, Mr. Li Zhongming, and Ms. Chen Huamin[86]. Risk Management - The company identified several potential risks, including market risk, business risk, and regulatory risk, which could impact its financial condition and operations[71]. - The group has established a Risk Control Committee to manage potential risks and ensure compliance with regulations[72].

| --- | --- | --- | |-----------------------------------------------------------------------------------------------|-------|----------| | | | | | | | | | | | | | | | | | | | | | | | | | 股份代號： 1560 （於開曼群島註冊成立的有限公司） STAR GROUP ASIA LIMITED 星星集團亞洲有限公司 | | | | | | | | | | | | | | 中期報告 | | | | 2024 | STAR GROUP ASIA LIMITED 星星集團亞洲有限公司 STAR GROUP ASIA LIMITED 星星集團亞洲有限公司 (Incorporated in the Cayman Islands with limited liability) STOCK CODE: 1560 Interim Report 2024 中期報告INTERIM REPORT 2024 | --- | --- | --- | |-- ...

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 517,921,000, a significant increase from HKD 160,294,000 for the same period in 2023, representing a year-over-year growth of 223%[1] - The gross loss for the period was HKD 81,263,000, compared to a gross profit of HKD 29,216,000 in the previous year, indicating a shift in profitability[1] - The company recorded a loss before tax of HKD 217,175,000, compared to a loss of HKD 29,794,000 in the prior year, reflecting a substantial increase in losses[1] - The total comprehensive loss for the period was HKD 225,922,000, compared to a total comprehensive loss of HKD 28,984,000 in the same period last year[1] - The company reported a basic and diluted loss per share of HKD 34.07 for the current period, compared to HKD 4.64 in the previous year, highlighting a significant deterioration in earnings per share[4] - The company reported a pre-tax loss of HKD 218,538,000 for the six months ended June 30, 2024, compared to a loss of HKD 29,737,000 for the same period in 2023[26] - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD (0.34), significantly higher than HKD (0.05) for the same period in 2023[26] - The loss attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 218.5 million, compared to a loss of about HKD 29.7 million for the same period last year[53] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2024, was HKD 490,994, a significant increase from HKD 133,382 in the same period of 2023, representing a growth of 267%[13] - Property development revenue was HKD 477,512 for the six months ended June 30, 2024, up from HKD 118,619 in 2023, reflecting a growth of 302%[17] - The property development segment reported revenue of approximately HKD 477.5 million for the six months ended June 30, 2024, compared to HKD 118.6 million for the same period last year[54] - The revenue from property management and security services was HKD 7,078, an increase from HKD 5,861 in the previous year, representing a growth of 21%[17] - The property investment segment reported revenue of approximately HKD 21.6 million for the six months ending June 30, 2024, a slight decrease of HKD 0.2 million compared to HKD 21.8 million in the same period of 2023[56] - The city storage and workspace segment generated revenue of approximately HKD 19.1 million for the six months ending June 30, 2024, down by HKD 0.4 million from HKD 19.5 million in the same period of 2023[57] - The financing segment generated revenue of approximately HKD 1.5 million for the six months ending June 30, 2024, a decrease of HKD 0.5 million from HKD 2.0 million in the same period of 2023[60] - The construction and renovation segment reported revenue of approximately HKD 3.0 million for the six months ending June 30, 2024, compared to HKD 3.2 million in the same period of 2023[61] - The wine business segment generated revenue of approximately HKD 7.3 million for the six months ending June 30, 2024, a decrease from HKD 8.9 million in the same period of 2023[62] Assets and Liabilities - The company's net assets decreased to HKD 1,188,354,000 as of June 30, 2024, down from HKD 1,414,276,000 as of December 31, 2023, indicating a decline in financial stability[6] - Current liabilities totaled HKD 2,066,971,000, a decrease from HKD 2,426,350,000 at the end of the previous year, suggesting improved management of short-term obligations[5] - The total assets as of June 30, 2024, were HKD 3,395,361, a decrease from HKD 4,022,204 as of December 31, 2023[18] - The total liabilities as of June 30, 2024, were HKD 2,207,007, down from HKD 2,607,928 at the end of 2023[18] - The total amount of loans receivable as of June 30, 2024, was HKD 61,284,000, down from HKD 70,139,000 as of December 31, 2023[28] - Trade receivables increased to HKD 7,387 million as of June 30, 2024, compared to HKD 6,888 million as of December 31, 2023, reflecting a growth of approximately 7.3%[34] - The provision for credit losses was HKD 2,201 million for the period ending June 30, 2024, slightly higher than HKD 2,144 million for the previous period, indicating a 2.7% increase[34] - Total borrowings decreased to HKD 1,679,998 million as of June 30, 2024, from HKD 2,068,927 million as of December 31, 2023, representing a reduction of approximately 18.8%[42] - The aging analysis of trade and lease receivables shows that 0 to 30 days overdue receivables decreased to HKD 2,496 million from HKD 3,170 million, a decline of about 21.2%[36] - The company reported a significant decrease in trade payables, which fell to HKD 1,217 million as of June 30, 2024, from HKD 1,906 million as of December 31, 2023, a decrease of approximately 36.3%[37] - The total amount of accrued expenses and other payables decreased to HKD 215,962 million as of June 30, 2024, down from HKD 245,981 million, indicating a decline of about 12.2%[37] - The company’s interest-bearing borrowings included floating rate borrowings of HKD 1,499,449 million as of June 30, 2024, compared to HKD 1,837,112 million as of December 31, 2023, a decrease of approximately 18.4%[44] - The actual interest rate for fixed-rate borrowings remained stable at 18% for both periods, while floating rates ranged from 5.11% to 9.50% as of June 30, 2024, compared to 4.81% to 10.79% previously[45] - The company’s lease receivables decreased to HKD 2,121 million as of June 30, 2024, from HKD 2,361 million, reflecting a decline of approximately 10.2%[34] - The company has a significant amount of deposits and other receivables totaling HKD 35,127 million as of June 30, 2024, down from HKD 36,847 million, a decrease of about 4.7%[34] Financing and Investments - The company has entered into several financing agreements, including a revolving loan of HKD 350 million and another of HKD 205 million, with terms ensuring significant shareholder control[79] - The company capitalized borrowing costs at rates ranging from 3.72% to 13.55% for specific and general borrowings related to property development expenses, with no borrowing costs capitalized during the period[21] - The fair value of the redemption option of the convertible bonds was estimated at HKD 313.7 million as of June 30, 2024[50] - The company issued 3% convertible bonds with a nominal value of HKD 418 million on October 22, 2020, with no maturity date[48] - The group’s foreign currency borrowings as of June 30, 2024, amount to approximately 1.8 billion KRW (approximately HKD 10.2 million), an increase from 0.1 billion KRW (approximately HKD 0.7 million) as of December 31, 2023[71] - The group’s investment properties and properties held for sale as of June 30, 2024, are valued at approximately HKD 725.8 million and HKD 2,295.1 million, respectively[72] Operational Insights - The company has three completed projects and two development projects as of June 30, 2024[54] - The company has made significant progress in its "After Rain" project, successfully selling a large number of residential units[76] - The company remains optimistic about the long-term value of Hong Kong properties despite ongoing economic challenges, including inflation and high interest rates[76] - The company is actively seeking property and related development opportunities in other Asian regions such as Japan and South Korea to diversify its business[76] - The company has established a risk control committee to manage potential risks and uncertainties affecting its business and financial condition[75] - The company acknowledges various risks, including market risk, business risk, and regulatory risk, which could significantly impact its operations and financial performance[75] - The company is committed to adapting to the changing economic environment to seize new opportunities while effectively managing risks[76] Governance and Compliance - The company has established an Audit Committee to comply with Listing Rule 3.21, consisting of three independent non-executive directors[83] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2024, and agreed with the accounting principles adopted by the company[84] - The company believes that the current structure, with the Chairman and CEO roles held by the same individual, provides strong and consistent leadership beneficial to the company's overall interests[82] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[81] - The company did not recommend any interim dividends for the six months ended June 30, 2024, nor for the previous period[25] - The group employed 124 staff as of June 30, 2024, down from 133 staff as of December 31, 2023[74] - The group has no significant contingent liabilities as of June 30, 2024, and maintains sufficient cash and available bank financing to meet operational and investment needs[68]

Financial Performance - Total revenue for the year ended December 31, 2023, was approximately HKD 1,243.7 million, a decrease of about HKD 455.6 million from HKD 1,699.3 million for the year ended December 31, 2022[7]. - The net loss attributable to shareholders for the year was approximately HKD 294.6 million, compared to a profit of HKD 329.9 million for the previous year, representing a decrease of about HKD 624.5 million[11]. - Revenue from completed projects in the property development segment decreased from approximately HKD 1,619.2 million to HKD 1,158.0 million, a reduction of about HKD 461.2 million[14]. - The company recorded a loss of HKD 65.4 million from fair value changes in investment properties, compared to a gain of HKD 9.7 million in the previous year[14]. - Financing costs increased from approximately HKD 19.2 million to HKD 94.0 million, an increase of about HKD 74.8 million[14]. - Basic and diluted loss per share for the year was approximately HKD 0.4592, compared to earnings of HKD 0.5143 and HKD 0.2440 in the previous year[15]. - No final dividend was recommended for the year ended December 31, 2023, consistent with the previous year[12]. Property Development - The property development segment reported revenue of approximately HKD 1,158.0 million for the year ended December 31, 2023, down from HKD 1,619.2 million for the year ended December 31, 2022[16]. - The "Rain After" project generated revenue of approximately HKD 996.3 million upon completion and delivery of 168 residential units, with no revenue reported for the previous year[18]. - The "Cloud End" project confirmed revenue of approximately HKD 150.7 million from 49 properties and parking units, compared to HKD 402.9 million in the previous year[18]. - The company provided property management services for five completed projects, generating revenue of approximately HKD 12.8 million, up from HKD 10.4 million in the previous year[23]. Investment and Financing - The company plans to reduce debt and interest costs while exploring property opportunities in Japan and other Asian regions[8]. - The total carrying value of the investment property portfolio was approximately HKD 776.6 million as of December 31, 2023, compared to HKD 883.0 million a year earlier[20]. - The total amount of fund investments is approximately HKD 5.2 million, a decrease from HKD 6.1 million as of December 31, 2022, with plans to establish and manage real estate funds to raise more capital[29]. - As of December 31, 2023, total equity is approximately HKD 1,414.3 million, down from HKD 1,717.3 million as of December 31, 2022[30]. - The capital debt ratio decreased from approximately 156.7% as of December 31, 2022, to about 146.3% as of December 31, 2023, due to repayments[32]. - The debt-to-asset ratio decreased from approximately 51.6% as of December 31, 2022, to about 50.3% as of December 31, 2023, as a result of reduced total borrowings[32]. Market Outlook and Strategy - The group anticipates a gradual recovery in the real estate market due to the end of the interest rate hike cycle and the implementation of budget measures by the Hong Kong government to stimulate the market economy[48]. - The group plans to explore investment opportunities in Asian markets, particularly Japan, taking advantage of the depreciation of the yen and the country's zero interest rate monetary policy[50]. - The group remains flexible and competitive in response to market dynamics, preparing for potential challenges in 2024[50]. Corporate Governance - The company has adhered to the corporate governance code throughout the reporting period, with the exception of the separation of roles between the chairman and CEO[73]. - The board consists of 7 directors, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring a balanced composition for decision-making[78]. - The company emphasizes high standards of corporate governance and business ethics, which are crucial for long-term success and sustainable development[75]. - The board has delegated corporate governance responsibilities to the audit committee, which includes reviewing governance policies and compliance with legal regulations[77]. - All independent non-executive directors have confirmed their independence according to listing rules, ensuring unbiased oversight[81]. Risk Management - The group identified several potential risks, including market risk, business risk, industry risk, regulatory risk, and credit risk, which could significantly impact its operations and financial condition[46]. - The group has established a risk control committee to manage and respond to potential risks and uncertainties affecting its business[47]. - The company’s board of directors is responsible for maintaining a sound and effective risk management and internal control system to protect shareholders' interests[114]. Environmental and Social Responsibility - The company has implemented a green office program aimed at reducing carbon emissions, including measures such as using energy-efficient equipment and encouraging a paperless environment[140]. - The company has committed to complying with applicable environmental laws and regulations to minimize pollution and resource consumption[140]. - The company has focused on integrating environmental and social responsibility into its operational goals and strategies[140]. - The company aims to provide stakeholders with reliable and comparable environmental, social, and governance information[134]. Employee and Workforce Management - The group employed 133 employees as of December 31, 2023, an increase from 122 employees the previous year, and maintained competitive salary levels with annual reviews[44]. - Employee turnover rate for the year ending December 31, 2023, was approximately 30%, with 63.2% of those being male[157]. - 49.10% of employees received training during the year ending December 31, 2023, with training hours ranging from 1 to 15 hours[163]. Community Engagement - The company has focused on community investment in areas such as environmental concerns, labor needs, and youth entrepreneurship[186]. - The company has implemented a whistleblowing policy to maintain high levels of openness and accountability, with no significant fraud reported during the reporting period[122].

Financial Performance - For the year ended December 31, 2023, the revenue was approximately HKD 1,243.7 million, a decrease of 26.8% from HKD 1,699.3 million in the previous year[2] - The net loss for the year was approximately HKD 298.2 million, compared to a profit of HKD 331.1 million in the previous year, representing a significant decline[3] - Basic and diluted loss per share for the year was approximately HKD 0.4592, compared to earnings of HKD 0.5143 and HKD 0.2440 in the previous year[4] - The total comprehensive loss for the year amounted to HKD 303.1 million, compared to a total comprehensive income of HKD 335.1 million in the previous year[3] - The group reported a loss before tax of HKD 301,174,000 for 2023, compared to a profit of HKD 372,784,000 in 2022[17] - The loss attributable to the company's owners for the year ended December 31, 2023, was approximately HKD 294.6 million, compared to a profit of HKD 329.9 million for the year ended December 31, 2022[49] Assets and Liabilities - The group's total assets decreased to HKD 3,157.1 million from HKD 4,013.2 million, reflecting a reduction of 21.3%[6] - Current liabilities decreased to HKD 2,426.4 million from HKD 3,215.9 million, a reduction of 24.6%[6] - The group's net asset value decreased to HKD 1,414.3 million from HKD 1,717.3 million, a decline of 17.6%[7] - Total assets decreased to HKD 4,022,204,000 in 2023 from HKD 5,108,108,000 in 2022, reflecting a decline of 21.3%[19] - Total liabilities also decreased to HKD 2,607,928,000 in 2023 from HKD 3,390,778,000 in 2022, a reduction of 23.0%[19] - The group's total borrowings as of December 31, 2023, were approximately HKD 2,069.0 million, down from HKD 2,691.9 million the previous year, reflecting repayment activities[69] Revenue Breakdown - Revenue from property sales was HKD 1,157,984,000, down 28.5% from HKD 1,619,219,000 in the previous year[17] - The property development segment reported a loss of HKD 178,376,000 in 2023, compared to a profit of HKD 376,611,000 in 2022[17] - The wine business segment generated revenue of HKD 16,960,000 in 2023, an increase of 32.8% from HKD 12,813,000 in 2022[17] - The group’s investment property segment reported revenue of HKD 45,609,000, a slight decrease from HKD 46,341,000 in the previous year[17] - The group’s total rental income from investment properties was HKD 3,553,000, significantly up from HKD 624,000 in 2022[14] - Revenue from property investment for the year ended December 31, 2023, was approximately HKD 45.6 million, a decrease of about HKD 0.7 million compared to HKD 46.3 million for the year ended December 31, 2022[56] Cost Management - Administrative expenses were reduced to HKD 110.8 million from HKD 179.6 million, indicating a cost-cutting effort[3] - Interest expenses totaled HKD 220,850,000 for the year ended December 31, 2023, compared to HKD 179,272,000 in the previous year, reflecting an increase of approximately 23%[21][22] - The total employee costs for the year ended December 31, 2023, were HKD 39,218,000, down from HKD 46,396,000 in 2022, indicating a reduction of approximately 15%[28] Strategic Direction - The group plans to focus on property development and management services as part of its strategic direction moving forward[9] - The company is considering opportunities to purchase investment properties or develop properties with potential for appreciation to generate more stable rental income[59] - The group plans to establish and manage real estate funds to broaden financing sources and expand market share in property development[66] - The company anticipates a gradual recovery in the real estate market due to measures taken by the Hong Kong government to stimulate the economy and relax property market policies[86] Market and Operational Insights - The company identified several potential risks, including market risk, business risk, and regulatory risk, which could significantly impact its operations and financial condition[83] - The company remains flexible and competitive in response to market dynamics, adopting prudent strategies to navigate potential challenges in 2024[87] - The company has not experienced any significant disputes with employees or difficulties in hiring skilled personnel, maintaining good relationships with its workforce[82] Corporate Governance - The company believes it has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[94] - The audit committee, consisting of three independent non-executive directors, reviewed the audited consolidated financial statements for the year ending December 31, 2023[96] - The company's auditor confirmed that the financial data in the announcement is consistent with the audited financial statements for the year ending December 31, 2023[98] Miscellaneous - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[50] - No significant events requiring disclosure have occurred since December 31, 2023, up to the date of this announcement[89] - The company will suspend the transfer of shares from May 20, 2024, to May 23, 2024, to determine eligibility for the annual general meeting[91]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately HKD 160.3 million, a decrease of about HKD 28.7 million compared to HKD 189.0 million for the same period in 2022[7]. - The company reported a loss attributable to owners of approximately HKD 29.7 million, compared to a profit of approximately HKD 61.4 million for the same period in 2022[7]. - Basic loss per share for the period was approximately HKD 0.0464, compared to earnings of approximately HKD 0.0958 per share in the prior year[7]. - The decline in revenue was primarily due to reduced sales from completed projects and the lack of recognized gains from investment properties[7]. - The group reported a loss before tax of HKD 29,794 for the six months ended June 30, 2023, compared to a profit of HKD 63,961 in the same period last year[97]. - Total comprehensive loss for the period was HKD 28,984, a significant decline from a total comprehensive income of HKD 63,056 in the prior year[77]. - The company reported a net cash inflow from investing activities of HKD 3,111 thousand, a recovery from a cash outflow of HKD (36,349) thousand in the same period of 2022[83]. Revenue Breakdown - Revenue from property development was approximately HKD 118.6 million, down from HKD 149.9 million in the previous year, reflecting a decline in sales of completed projects[8]. - Revenue for the six months ended June 30, 2023, was approximately HKD 111.2 million from the completion and delivery of 40 property units, compared to HKD 97.1 million from 46 units for the same period in 2022, representing an increase of approximately 14.3%[11]. - The property investment segment reported revenue of approximately HKD 21.8 million for the six months ended June 30, 2023, down from HKD 24.1 million in the same period of 2022, a decrease of about 9.5%[12]. - Revenue from urban storage and workspace services was approximately HKD 19.5 million for the six months ended June 30, 2023, compared to HKD 22.0 million in the same period of 2022, reflecting a decrease of about 11.4%[13]. - The company confirmed revenue of approximately HKD 5.9 million from property management services for the six months ended June 30, 2023, an increase from HKD 5.2 million in the same period of 2022, representing a growth of about 13.5%[17]. - Financing services generated revenue of approximately HKD 2.0 million for the six months ended June 30, 2023, up from HKD 1.5 million in the same period of 2022, an increase of about 33.3%[18]. - Construction and renovation services reported revenue of approximately HKD 3.2 million for the six months ended June 30, 2023, compared to HKD 2.0 million in the same period of 2022, reflecting a growth of about 60%[19]. - The wine business generated revenue of approximately HKD 8.9 million for the six months ended June 30, 2023, an increase of about HKD 2.9 million compared to HKD 6.0 million for the same period in 2022[20]. Assets and Liabilities - As of June 30, 2023, total equity was approximately HKD 1,688.3 million, a decrease from HKD 1,717.3 million as of December 31, 2022[25]. - The group's current assets increased to approximately HKD 4,314.1 million as of June 30, 2023, compared to HKD 4,013.2 million as of December 31, 2022[25]. - The group's current liabilities rose to approximately HKD 3,478.9 million as of June 30, 2023, from HKD 3,215.9 million as of December 31, 2022[25]. - The total carrying value of the investment property portfolio was approximately HKD 883.0 million as of June 30, 2023, unchanged from December 31, 2022[13]. - The company reported total borrowings of HKD 2,863,716,000 as of June 30, 2023, compared to HKD 2,691,858,000 as of December 31, 2022[127]. - The company's net asset value decreased to HKD 1,688,346 from HKD 1,717,330 at the end of 2022[79]. - Total liabilities increased to HKD 3,653,470 from HKD 3,390,778, reflecting a rise of 7.7%[99]. Market Conditions and Strategic Outlook - The overall performance reflects challenges in the property market, necessitating strategic adjustments moving forward[7]. - The group faces significant challenges due to inflation and high interest rates, impacting consumer and business environments[42]. - The Hong Kong property market shows signs of stabilization, although initial demand has been offset by recent interest rate increases[42]. - The strategic position of Hong Kong as a major financial center continues to support the local property market's value[42]. - The company is considering opportunities to purchase investment properties or develop properties with potential for appreciation to generate stable rental income[16]. Corporate Governance and Shareholder Information - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[44]. - Star Properties Holdings (BVI) Limited holds 432,140,800 shares, representing approximately 67.36% of the company's issued shares as of June 30, 2023[54]. - Metropolitan Lifestyle (BVI) Limited owns 836,000,000 shares, which is 130.32% of the company's issued shares, indicating a significant stake held indirectly by Mr. Chen Wenhui[54]. - The company adopted a share option scheme on June 27, 2016, aimed at incentivizing eligible participants to contribute to the group's success[55]. - The company has no disclosed interests or short positions in its shares or related securities as of June 30, 2023[54]. - The company has maintained compliance with the corporate governance code, except for the separation of the roles of chairman and CEO[70]. Employee and Operational Insights - As of June 30, 2023, the group employed 142 employees, an increase from 122 employees as of December 31, 2022[38]. - Total employee costs increased to HKD 19,270,000 for the six months ended June 30, 2023, up from HKD 14,837,000 in the previous year, reflecting a rise of 29.8%[5]. - The company has established an audit committee to oversee financial reporting and internal control systems, in line with listing rules[74]. Risk Management - The risk management committee is actively monitoring potential risks, including market, business, and regulatory risks that could impact operations[40].

Financial Performance - The total revenue for the year ended December 31, 2022, was approximately HKD 1,699.3 million, an increase of about HKD 1,620.9 million compared to HKD 78.4 million for the year ended December 31, 2021[8]. - The net profit attributable to shareholders for the year was approximately HKD 329.9 million, a significant increase from a loss of HKD 37.1 million in the previous year[13]. - Basic earnings per share for the year were HKD 0.5143, compared to a loss per share of HKD 0.0579 in the previous year[16]. - The property development segment reported revenue of approximately HKD 1,619.2 million for the year ended December 31, 2022, compared to none for the previous year[17]. - The investment property segment reported revenue of approximately HKD 46.3 million for the year ended December 31, 2022, an increase of approximately HKD 4.5 million from the previous year[21]. - The City Storage and Workspace segment generated revenue of approximately HKD 42.8 million for the year ended December 31, 2022, an increase of approximately HKD 5.0 million from the previous year[22]. - The group generated revenue of approximately HKD 3.5 million from credit financing for personal and corporate clients, a decrease of about HKD 1.0 million compared to HKD 4.5 million in the previous year[26]. - Revenue from the construction and renovation segment was approximately HKD 6.5 million, an increase from HKD 3.9 million in the previous year, indicating a growth of about 66.7%[27]. - The wine business reported revenue of approximately HKD 12.8 million, down from HKD 19.0 million, a decrease of about 32.6% year-on-year[29]. - The group’s total equity as of December 31, 2022, was approximately HKD 1,717.3 million, up from HKD 1,382.3 million, an increase of about 24.2%[32]. Property Development and Sales - The company successfully completed the sale of three properties in South Korea, contributing to the revenue growth[8]. - The construction of the property named "Cloud Edge" was completed, with sales recognized in the second quarter of 2022[8]. - The completed units sold and temporary rental income from properties held for sale for the Rainbow project were approximately HKD 56.2 million and HKD 14.1 million, respectively, for the year ended December 31, 2022[19]. - The Cloud project generated revenue of approximately HKD 402.9 million from the completion and delivery of 187 properties and parking units during the year ended December 31, 2022[19]. - The company plans to focus on the pre-sale of its first residential project "After Rain" in Yuen Long, expected to be completed in the second half of 2023[9]. - The company plans to redevelop the Rain project into a luxury shared apartment complex, with construction expected to be completed in the second half of 2023[19]. - The Corner 19, Corner 25, and Corner 50 projects in Seoul, South Korea, were sold in the third quarter of 2022, generating revenue for the company[19]. Corporate Governance - The board consists of 7 directors, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring a balanced mix of skills and experience[83]. - The company is committed to maintaining high standards of corporate governance and business ethics, which are crucial for long-term success and sustainable development[80]. - The board has delegated responsibilities for risk management and internal control to the risk control committee, ensuring effective oversight of these critical areas[90]. - The company has established clear written terms of reference for each committee to ensure proper governance practices are followed[99]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[107]. - The company has a policy for non-executive directors to serve specific terms of two to three years[111]. - The company adheres to corporate governance codes and regularly reviews the roles and responsibilities of its committees[99]. Risk Management - The group identified several potential risks, including market risk, business risk, and regulatory risk, which could impact its operations and financial condition[46]. - The risk management and internal control system is deemed effective and sufficient by the board of directors during the reporting period[121]. - The risk control committee held one meeting during the reporting period to review the internal controls and risk management of the group[120]. - The internal audit team conducted an annual review of the group's major operating units to assess the effectiveness of the risk management and internal control systems[123]. Employee and Labor Relations - The group employed 122 staff as of December 31, 2022, an increase from 104 staff as of December 31, 2021[45]. - The overall employee turnover rate for the year ending December 31, 2022, was approximately 21.0%, with 44.4% being male and 55.6% female[163]. - 49.10% of employees received training during the year, with 62.12% of regular employees participating in training programs[169]. - The group has zero work-related fatalities and zero lost workdays due to work injuries for the year ending December 31, 2022[166]. - The group has a zero-tolerance policy towards forced labor and child labor, ensuring compliance with all relevant laws and regulations[171]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and sustainable development as key trends in society, implementing measures to minimize environmental impact[147]. - The company has introduced a green office program to encourage employees to adopt environmentally friendly practices[147]. - The company is focused on integrating environmental and social responsibility into its operational and management activities[139]. - The company aims to reduce pollution and resource consumption while encouraging suppliers and subcontractors to engage in environmental protection activities[147]. - The company has implemented energy-saving measures, including the installation of sensor devices to prevent electricity wastage[152]. - The company has adhered to all applicable environmental laws and regulations without any significant non-compliance issues reported for the year[150]. Future Outlook and Strategy - The company remains cautiously optimistic about the Hong Kong property market, expecting residential property prices to stabilize and gradually rebound throughout the year[53]. - The company is focused on improving business performance and operational efficiency amidst ongoing global economic challenges, including inflation and interest rate hikes[49]. - The company is monitoring market changes closely while preparing for recovery across various markets and industries in 2023[53]. - The company is investing in R&D, allocating F% of its budget to develop new technologies and improve existing products[63]. - The company is implementing cost-control measures, targeting a reduction in operating expenses by G% over the next year[63]. Shareholder Relations - The company encourages shareholder participation in annual general meetings and supports proxy voting for those unable to attend[128]. - The company has adopted a dividend policy that considers various factors, including shareholder rights and overall financial performance[124]. - The company did not recommend the distribution of a final dividend for the reporting period, consistent with the previous year[198]. - The annual general meeting for 2023 is scheduled for June 1, 2023, with further announcements to be made in accordance with listing rules[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Star Group Company Limited 星 星 集 團 有 限 公 司 （以開曼星星編號1560之名稱在香港經營業務） （於開曼群島註冊成立的有限公司） （股份代號：1560） 截至二零二二年十二月三十一日止年度全年業績公告 財務摘要 • 截至二零二二年十二月三十一日止年度收益及溢利分別約為1,699.3百萬港元 （截至二零二一年十二月三十一日止年度：約78.4百萬港元）及約為331.1百 萬港元（截至二零二一年十二月三十一日止年度：虧損約37.5百萬港元）。 • 截至二零二二年十二月三十一日止年度每股基本及攤薄盈利分別約為51.43港 仙及24.40港仙，而去年同期每股基本及攤薄虧損分別約為5.79港仙及5.79 港仙。 ...

Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately HKD 189.0 million, an increase of about HKD 146.8 million compared to the same period last year[12]. - Profit attributable to owners of the company for the same period was approximately HKD 61.4 million, compared to a loss of approximately HKD 26.0 million in the previous year[12]. - The gross profit margin from completed project sales was approximately HKD 30.5 million, with a fair value gain of approximately HKD 50.9 million from investment properties converted to properties held for sale[12]. - For the six months ended June 30, 2022, the company reported revenue of HKD 188,990,000, a significant increase from HKD 124,978,000 in the same period last year, representing a growth of approximately 51.3%[99]. - Gross profit for the same period was HKD 64,012,000, compared to HKD 34,111,000 in the previous year, indicating a year-over-year increase of about 87.6%[99]. - The company recorded a profit before tax of HKD 63,961,000, a substantial recovery from a loss of HKD 24,361,000 in the prior year[99]. - Net profit for the period was HKD 60,385,000, compared to a loss of HKD 25,460,000 in the same period last year, marking a turnaround in performance[99]. - The total comprehensive income for the period was HKD 63,056,000, compared to a loss of HKD 27,894,000 in the previous year[99]. - The company's basic earnings per share increased to HKD 9.58 from a loss of HKD 4.06 in the prior year[99]. Revenue Segments - The property development segment reported revenue of approximately HKD 149.9 million, with all units of the Tianji Center and Star Center sold and delivered[13][14]. - The Yunzhiduan project was completed in Q2 2022, generating revenue of approximately HKD 97.1 million from the sale of 46 property units[16]. - Revenue from property investment for the six months ended June 30, 2022, was approximately 24.1 million HKD, an increase of about 3.4 million HKD compared to the same period last year[22]. - Revenue from urban storage and workspace services for the six months ended June 30, 2022, was approximately 22.0 million HKD, an increase of about 4.0 million HKD compared to the same period last year[23]. - Revenue from property management services for the six months ended June 30, 2022, was approximately 5.2 million HKD, an increase from 4.8 million HKD in the same period last year[27]. - Revenue from the wine business for the six months ended June 30, 2022, was approximately 6.0 million HKD, a decrease of about 5.7 million HKD compared to the same period last year[30]. Assets and Liabilities - The total carrying value of the investment property portfolio as of June 30, 2022, was approximately 910.8 million HKD, down from 1,054.1 million HKD as of December 31, 2021[23]. - As of June 30, 2022, the group's total equity was approximately HKD 1,445.3 million, an increase from HKD 1,382.3 million as of December 31, 2021[35]. - The group's current assets increased to approximately HKD 4,607.7 million as of June 30, 2022, from HKD 4,180.7 million as of December 31, 2021[35]. - The group's debt-to-asset ratio decreased from approximately 59.4% as of December 31, 2021, to approximately 55.0% as of June 30, 2022[38]. - The group's total assets as of June 30, 2022, amounted to HKD 5,633,798,000, an increase from HKD 5,301,104,000 as of December 31, 2021[161]. - Total liabilities increased to HKD 4,188,486,000 as of June 30, 2022, compared to HKD 3,918,848,000 at the end of the previous year[161]. Market Conditions and Future Outlook - The company plans to continue monitoring the property market to seize development opportunities despite the cautious approach due to COVID-19[21]. - The company is considering opportunities to purchase investment properties or develop properties with potential for appreciation to generate stable rental income[26]. - The residential market prices have dropped approximately 5.2% in the first eight months of 2022, following a 4.6% increase in 2021[55]. - The group believes that residential property prices will remain stable throughout the year despite current market headwinds[57]. - The group anticipates that the Hong Kong government may reconsider stamp duty policies if property prices continue to decline[55]. Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal control systems, ensuring compliance with corporate governance standards[94]. - The company has maintained compliance with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[90]. - The company believes that its governance structure adequately addresses potential issues of power concentration, with a board that possesses sufficient independence[91]. - The company’s independent directors have no interests in any competing businesses that could affect the group’s operations[83]. Employee and Operational Information - As of June 30, 2022, the group employed 117 staff, an increase from 104 staff as of December 31, 2021[50]. - The group has not experienced any significant disputes with employees or difficulties in hiring and retaining experienced staff[50]. - Total employee costs for the period were HKD 14,837,000, slightly down from HKD 15,219,000 in the previous year[173]. Financing and Capital Structure - The company entered into a financing agreement for a loan of up to HKD 255,048,000, with a term of 21 months, requiring the chairman to maintain at least 60% beneficial ownership[86]. - The company raised borrowings amounting to HKD 222,726,000 during the financing activities, a significant increase from HKD 73,598,000 in the prior year[126]. - The company's convertible bond liabilities were approximately HKD 84.9 million as of June 30, 2022, compared to HKD 81.8 million as of December 31, 2021[36]. Shareholder Information - The total number of issued shares as of June 30, 2022, is 641,498,000 shares[65]. - Chen Wenhui holds a total of 1,286,640,800 shares, representing 200.57% of the total issued shares[63]. - Star Properties Holdings (BVI) Limited owns 432,140,800 shares, accounting for 67.36% of the total issued shares[71]. - Metropolitan Lifestyle (BVI) Limited has an interest in 836,000,000 shares, which is 130.32% of the total issued shares[71]. - The company has a total of 418,000,000 HKD in convertible bonds, representing 100% of the total[67]. Dividends and Stock Options - The group did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[59]. - A total of 1,850,000 stock options granted under the updated plan expired during the six months ending June 30, 2022[79]. - The total stock options granted during the reporting period were zero, indicating no new options were issued[82].